Jurisprudentiol - Tuesday's cases

By Vijay Kumar

Central Excise

Default in payment of monthly duty - When appellant does not challenge order passed by Assistant Commissioner directing them to pay duty consignment wise, it attains finality: HC

THE appellant, a manufacturer, defaulted in payment of excise duty within the due date. The Assistant Commissioner, in exercise of powers under Rule 8(3A) of Central Excise Rules, 2002, passed an order dated June 5, 2006 directing the assessee to pay excise duty on consignment basis by debiting in PLA for a period of two months from the date of communication of the order or till all dues including interest thereon were paid, whichever was later. This order dated June 5, 2006 was not appealed against by the assessee and thus, attained finality.

Income Tax

Whether deduction u/s 10A is allowable without setting off of brought forward loss and unabsorbed depreciation of other units - YES, rules Karnataka HC

ASSESSEE is in the business of Manufacture and Trading of Process Control Instruments. Assessee claimed exemption u/s 10-A, for its STP unit before set off on brought losses and depreciation. AO held that the deduction u/s 10-A has to be allowed from the total income of the assessee as per section 80B(5) and after setting off of all brought forward losses within the context of Section 32(1) r.w.s. 72(2). Accordingly, after re-computation, the assessee was held to be not entitled for exemption u/s 10-A.

Service Tax

Appellant, owner of different brands of IMFL getting the same manufactured from contract bottling units under agreements - whether franchisee service - issue is debatable - Pre-deposit waived and stay granted: CESTAT

THE appellants are owners of the different brands of Indian Made Foreign Liquor (IMFL) and engaged in getting the said branded alcoholic beverages manufactured from different contract bottling units (CBUs) on contract basis under agreements. These agreements provided for manufacture of branded alcoholic beverages by the CBUs with the condition that the same were supplied on sale to the specified distributors of the applicants.

The DGCEI held a view that manufacture and sale of branded beverages amounted to grant of representational right and the said service is taxable under the category 'Franchisee Service' for the period 1.7.2003 to 30.9.2006.

Employees Provident Fund

Assets of Companies - Dues payable by an employer under Section 11 of Employees' Provident Funds and Miscellaneous Provisions Act, has first charge and precedence over other dues: SC

THE question which arises for consideration in these appeals is whether priority given to the dues payable by an employer under Section 11 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 is subject to Section 529A of the Companies Act, 1956 in terms of which the workmen's dues and debts due to secured creditors are required to be paid in priority to all other debts.

See our columns Tomorrow for the judgements